Written Answers. - Social Economy.
Seamus Kirk
Question:
105
Mr. Kirk
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the plans, if any, she has to publish a White or Green Paper on the social economy and its long-term sustainability; and if she will make a statement on the matter.
[23182/99]
The social economy in Ireland has developed over many years. The strong impetus for community development in this country has resulted in an enhanced focus in recent years on the possibilities for development for this area of the economy.
The EU White Paper, Growth Competitiveness and Employment, 1994, gave a clear endorsement to the concept of the social economy. The White Paper identified the possibility of encouraging new types of social service provision and useful social employment opportunities in response to local demand for services which neither the mainstream market nor the public sector could satisfy.
Against this background a working group on the social economy was set up on foot of the commitment in Partnership 2000 to undertake a detailed examination of the potential of the social economy in Ireland, both in terms of employment and also in the supply of services, such as childcare, eldercare and services improving the quality of life in disadvantaged areas.
The working group was made up of representatives from the four pillars of Partnership 2000 and relevant Departments, and was chaired by the Department of Enterprise Trade and Employment. The group met from October 1997 until completion of its report in July 1998. The group examined existing provision for social economy type activity and concluded that while a considerable level of State and EU funds, approximately £130 million per annum, was already being invested in social economy type activity, there was a case for a dedicated social economy programme which would have as its primary aim the regeneration of disadvantaged communities, and thereby enhance opportunities and the quality of life in such communities. The report and its recommendations were agreed by all the social partners and endorsed in the P2000 process.
Arising from the conclusions and recommendations of the working group's report the Government decided in July 1999 to approve the introduction of a social economy programme to be overseen by a national monitoring committee.
The monitoring committee, chaired by the Department of Enterprise Trade and Employment and representative of relevant Departments and the social partners, held its first meeting on 3 November. A further meeting will take place in mid-December 1999 where it is expected that the committee will adopt the framework for the social economy programme.
Following agreement on the framework, FÁS will establish local working groups to oversee the programme at local level and will begin to promote and fund projects. Applications for funding will be made through FÁS offices locally. The monitoring committee intends to carry out an evaluation of the new programme before the end of its second year of operation.
As defined by the P2000 working group the social economy projects would have the following characteristics: ownership within a community or community of interest e.g. travellers, and responding to market demand regardless of source of income; focus on the economic or social development of a community or community of interest; operation benefiting the community and individual members;and providing for employment experience and employment opportunities which are sustainable, but which might nonetheless be dependent on State support.
Three categories of projects will be funded under social economy: community businesses, ultimately financed from trading income alone; deficient demand social enterprises, where the demand for particular goods and services within a community is not matched by resources to pay for these due to disadvantage or low density of population; enterprises based on public service contracts, where public services in disadvantaged areas and communities are subcontracted to local social economy enterprises.
When fully operational, it is expected that the social economy programme will provide for an annual investment of approximately £41 million. The programme will be funded primarily through a reallocation, on a phased basis, of a proportion of funding currently committed to community employment.
In view of the extensive examination of the social economy carried out by the P2000 working group, the decision by the Government to establish a new dedicated social economy programme, the recent establishment of the monitoring committee for the new programme and the intention of the committee to evaluate the programme within two years, I have no plans to conduct a White or Green Paper process on the social economy.
